We started off the season with an opening stock of 7.7 million tonne (mt) and expect the sugar production to end FY17 season at 20.3 mt, said Vijay Banka, CFO, Dwarikesh Sugar told CNBC-TV18 from the sidelines of Prabhudas Lilladher's 'Rising start 2017 investor conference'.
For the next year the production may go up around 4 million tonne, he added.
With a total stock of 28 mt of sugar, considering consumption of about 24 mt and early start of the season in 2017-2018, the sugar stock position for next year is comfortable, he said.
Most of the sugar mills in Maharashtra have already closed operations. Uttar Pradesh sugar production numbers are expected to be good at more than 8.5 mt, said Banka.
On price front, he said global sugar prices came down because of the profit booking by the hedge funds and also because the expected imports from India are not likely to happen. All this has a bearing on domestic prices, so prices came down from Rs 3700/quintal to Rs 3650/quintal. However, he does not expect pressure on sugar prices in India,
However, he does not expect pressure on sugar prices in India, infact would be slightly better, when the demand and supply are in line, he said.
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